If the U.S. dollar depreciates, _____.

Question

the demand for goods produced in the United States would go down

U.S. exports would fall

the U.S. dollar would become stronger

the demand for goods produced in the United States would go up

Answer 1

If the U.S. dollar depreciates, the demand for goods produced in the United States would go up.

When the dollar depreciates, it makes U.S. goods and services cheaper for foreign buyers, increasing demand for exports. Conversely, imports may become more expensive for U.S. consumers, potentially leading to a decrease in demand for foreign goods.